Low Income Tax Credits and Cost Containment in New York City, 2017

New York City's 2017 Qualified Allocation Plan (QAP) awards points to individual projects based on a comparison of project costs to the costs proposed in other project applications to ensure cost containment.

Development Costs - All development costs will be reviewed for reasonableness as required under Section 42. As general reference points, HPD may refer to development cost guidelines used by the Agency's own financing programs or to general industry standards. Costs may be reviewed both on a line-by-line basis, as well as on a total cost per unit basis. HPD will consider reasonable variations in cost based on project location, scope of work involved, whether prevailing wage rules apply, and other factors. The following specific guidelines will apply to all projects applying for tax credits:

Lower Costs - Projects with an overall lower Total Development Cost (TDC) than projects of the same housing type (Supportive Housing, New Construction, and Preservation). Projects will be ranked according to TDC within those housing types and the lower 50% of each category will receive points. (5 Points)

This Working Paper looks at the combination of incentives state agencies are using in their LIHTC programs for affordable housing in neighborhoods with economic growth, quality schools, low crime, and access to...